EU antitrust regulators have cautioned that Amazon’s $1.7 billion acquisition of iRobot, a robot vacuum cleaner maker, could potentially diminish competition and strengthen Amazon’s position as an online marketplace provider. The European Commission has launched a comprehensive investigation and will make a decision by November 15 regarding the approval or blockage of the deal.
In response to the investigation, an Amazon spokesperson stated, “We continue to work through the process with the European Commission and are focused on addressing its questions and any identified concerns at this stage.”
With concerns growing worldwide about Big Tech companies acquiring smaller rivals, antitrust enforcers have intensified their scrutiny. Their main worries include the consolidation of vast amounts of data by a small number of companies, as well as dominant players leveraging their market influence to enter new sectors.
The acquisition, announced in August of last year, would expand Amazon’s range of smart devices to include iRobot’s Roomba robot vacuum. Amazon’s existing portfolio already includes the Alexa voice assistant, smart thermostats, security devices, and wall-mounted smart displays.
iRobot produced its first Roomba robot vacuum in 2002. Amazon has previously acknowledged that the vacuum cleaner market is highly competitive, with numerous Chinese players involved.
In a statement, the EU executive expressed concerns that the acquisition could allow Amazon to limit competition in the robot vacuum cleaners market and strengthen its position as an online marketplace provider.
The Amazon spokesperson also highlighted that the company could potentially “offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers.”
The EU’s decision aligns with a Reuters report from last month and comes one month after the UK’s antitrust agency unconditionally cleared the deal following a preliminary review.
© Thomson Reuters 2023
On a separate note, several new smartphones, such as the Nothing Phone 2 and the Motorola Razr 40 Ultra, are anticipated to make their debut in July. For an in-depth discussion on these exciting upcoming smartphones and more, tune in to the latest episode of Orbital, the Gadgets 360 podcast. Orbital is accessible on various platforms, including Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and other podcast platforms.
[Podcast embed link]
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